Microsoft & Chevron Power Up Texas Data Center

Microsoft and Chevron are partnering on "Project Kilby," a $7 billion AI data center located 20 miles south of Pecos, Texas. This significant project will include a self-powered electrical generation plant in Reeves County, designed to meet the immense energy demands of the data center. The facility will be powered by natural gas, utilizing GE Vernova and Caterpillar turbines.

The project is slated to begin delivering power to the data center by late 2028. Beyond its energy infrastructure, "Project Kilby" aims to leverage produced water from oil drilling operations, presenting a beneficial use for this resource in the Permian Basin. The initiative is projected to require over 6,000 construction workers and will sustain hundreds of permanent operational jobs upon completion.

Texas Governor Greg Abbott has directed the Public Utility Commission of Texas and ERCOT to ensure data centers support residential ratepayers, conserve water, and consider neighborhood needs. He advocates for data centers to fully fund their required infrastructure and plans to work with the Legislature to codify these protections, ensuring they contribute to Texas's electric capacity rather than just increasing demand.